Japanese automakers Nissan and Honda have announced plans for a merger that would catapult them to a top position in an industry that's in flux as it transitions away from its reliance on fossil fuels.

Japanese carmakers Honda and Nissan are discussing a merger with Mitsubishi Motors in a bid to counter fierce global competition in the field of electric vehicles, the companies said in a statement released after an emergency press conference on Monday.

Honda, Nissan, and Mitsubishi Motors are in merger talks, potentially forming the world's third-largest automaker. The partnership aims to accelerate their development of electric vehicles and autonomous driving technology,